Libya Signs PPA Agreement for Ghadames Solar Project

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The General Electricity Company of Libya (GECOL) has signed a power purchase agreement (PPA) for the Ghadames plant. The plant is being built by Irish independent power producer AG Energy.

The agreement gives the parties opportunity for the further development of the project, which is targeting an installed capacity of 200mwp.

The power plant will be located 650km from the capital Tripoli. It was first approved by GECOL and the Libyan Privatisation and Investment Council in January 2022. Since then, several companies have expressed their intention to invest in the production of photovoltaic energy in Libya.

A few weeks ago, W Investment, an investment company of Alpha Dhabi Holding, agreed with GECOL to develop an installed solar capacity of 2,000mw in several phases, the first of which will be 500mw.

These are announced in a context marked by the resurgence of load shedding. Moreover, a prolonged power cut during the Tabaski holiday led to demonstrations, particularly in Tobruk.

Despite its strong potentials, Libya is lagging behind its North African neighbours in the development of energy due largely to political crisis, which has denied them the opportunity for needed to attract IPP investment.

The Libyan Privatisation and Investment Council and GECOL agreed in January 2022 to form a working group to implement the 2025-2030 electricity sector plan. The plan is expected to improve Libya’s electricity from both conventional (thermal) and energy sources.

This strategy will be based on local and foreign private investors, with the establishment of a one-stop shop bringing together several government departments to facilitate the procedures of IPPs.

The country is plagued by political divisions, with a camp based in Cyrenaica (in the east of the country), whose leader is Marshal Khalifa Haftar, and a government based in Tripoli (in the west), led since 2021 by Abdelhamid Dbeibah.

Despite talks under the aegis of the United Nations (UN), the two parties are unable to agree on the holding of elections that would put Libya on the road to normalisation after nearly 11 years of political instability.

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